GE has escalated a patent dispute with rival wind turbine maker Siemens Gamesa by extending claims of alleged patent infringement to the UK, in a move that has the potential to block or delay the construction of two giant offshore wind developments – the 1.2GW East Anglia 3 and the 1.4GW Hornsea 2 projects.

“GE filed suit against Siemens Gamesa Renewable Energy Limited in the High Court of Justice of England and Wales raising claims of patent infringement. The infringement action involves the UK part of EP 1 590 567 and certain offshore wind turbines,” GE Renewable Energy said in a statement sent to Recharge, adding it would not comment further on the case pending litigation.

The claim filed on December 29, 2020, is similar to GE complaints already filed earlier last year in other jurisdictions, accusing Siemens Gamesa of using GE's patented technology to protect its turbines from dramatic fluctuations in power.

The German-Spanish manufacturer pointed to the fact that the lawsuit is similar to cases in Germany and the US, but was similarly tight-lipped as GE.

“Siemens Gamesa will be defending itself against any of the lawsuits and is confident that features and functionalities marketed by Siemens Gamesa do not infringe any valid third parties’ intellectual property rights,” the manufacturer said.

The company added later on Monday: “Siemens Gamesa is confident that the lawsuits won’t delay or interfere with any current and future Siemens Gamesa projects."

Retaliatory complaint

Last summer, when GE filed the patent infringement complaint against Siemens Gamesa in the US, it had alleged that its rival’s wind turbines infringe on GE’s patented low-voltage-ride-through and zero-voltage-ride-through technologies, which ensure that the wind turbines will pass ride-through certification.

Ride-through is the capability of a turbine to stay connected to the grid during dips in voltage.

Months later, in what could have been a tit-for-tat reaction to GE’s legal efforts, Siemens Gamesa filed a patent-infringement lawsuit against GE in the US, which, if successful, could prevent the latter’s 12-13MW Haliade-X offshore machines from being built.

According to Philip Totaro, chief executive of renewables market intelligence company IntelStor, the wording of GE’s newest claim differs from the US patent claim, which ”could improve the chances of success in the litigation for GE, or at least compel SGRE into settlement negotiations in order to avoid costly delays to start of construction on the East Anglia 3 and Hornsea 2 projects.”

Totaro estimates the combined total investment for the two projects by Iberdrola and Orsted at $7.7bn, with the value of the turbine contract for Siemens Gamesa is estimated at $4.7bn.

Iberdrola and Orsted’s problem

The escalating patent dispute is a sensitive issue for the developers, which have orders in place for machines from both OEMs in Europe and the US.

Iberdrola’s US unit Avangrid recently decided to opt for GE’s Haliade-X turbines at its Vineyard Wind (phase 1) project in the US, while Orsted has a supply agreement with GE for its Ocean Wind project off New Jersey.

“It is curious that Orsted and Iberdrola would proceed with commercial dealings with GE in one market [the US] while their project development efforts were being hamstrung in another [the UK] by the same commercial partner,” Totaro said.

“Presumably the ink was dry on the supply contracts in the US prior to the UK patent litigation being filed on December 29th.”

Vestas last laugh?

The patent dispute between GE and Siemens Gamesa ultimately could result in the second largest offshore wind turbine maker Vestas having the last laugh, which just assumed full control of former offshore wind subsidiary MHI Vestas.

GE still has another two to three years of patent life left in global jurisdictions including Germany, France, Ireland, Spain and Sweden in addition to the UK and USA, and it is exercising its intellectual property rights in an effort to drive market behaviors and product perception in those markets where Siemens Gamesa has a discernable lead, Totaro explained.

“This tactic could backfire and drive developers to take a second look at Vestas, as they become fed up with project delays instigated by IP litigations.”

UPDATED with additional comment by Siemens Gamesa that the OEM doesn't expect delays at current or future projects

Wind

Giant offshore wind plans at risk as GE extends patent dispute with Siemens Gamesa to UK